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Chapter 08 - Structuring Organizations for Today's Challenges
8-41
PPT 8-51
Restructuring
(See complete PowerPoint slide notes on page 8.64.)
PPT 8-52
Traditional and Inverted
Organizations
TEXT FIGURE 8.9
Comparison of an Inverted
Organizational Structure and a
Traditional Organizational Structure
(Text page 224)
(See complete PowerPoint slide notes on page 8.65.)
2. ORGANIZATIONAL (OR CORPORATE) CUL-
TURE is the widely shared values within an or-
ganization that provide unity and cooperation to
1. All organizations have two systems.
Chapter 08 - Structuring Organizations for Today's Challenges
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PPT 8-53
Organizational Culture
(See complete PowerPoint slide notes on page 8.65.)
lecture link 8-10
EMPLOYER ICEBREAKING
RITUALS
Each organizational culture is different. Foot Levelers has
its own practices. (See the complete lecture link on page 8.49
of this manual.)
PPT 8-54
Formal Organization
(See complete PowerPoint slide notes on page 8.65.)
PPT 8-55
Informal Organization
(See complete PowerPoint slide notes on page 8.66.)
Chapter 08 - Structuring Organizations for Today's Challenges
2. No organization can operate effectively without
BOTH TYPES of organization.
a. The FORMAL ORGANIZATION can be slow
3. It is wise to learn quickly who the important peo-
VIII. SUMMARY
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PPT 8-56
Limitations of Informal
Organizations
(See complete PowerPoint slide notes on page 8.66.)
PPT 8-57
Group Norms
(See complete PowerPoint slide notes on page 8.66.)
lecture link 8-11
MAPPING THE INFORMAL
ORGANIZATION
The best way to manage informal organizations is to
acknowledge their existence and then bring them out into the
open. (See the complete lecture link on page 8.74 of this man-
ual.)
bonus case 8-4
OFFICE ALUMNI
Many businesses have set up social networking sites for
their “alumni” as the recession takes its toll on American jobs.
(See the complete lecture link on page 8.85 of this manual.)
progress
assessment
(Text page 226)
PPT 8-58
Progress Assessment
(See complete PowerPoint slide notes on page 8.64.)
Chapter 08 - Structuring Organizations for Today's Challenges
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PowerPoint slide notes
PPT 8-1
Chapter Title
PPT 8-2
Learning Goals
PPT 8-3
Ursula Burns
Chapter 08 - Structuring Organizations for Today's Challenges
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PPT 8-4
Name That Company
Company: K2 Skis
PPT 8-5
Reorganization Is for Everyone
Changing economic times require businesses to alter
their approach via reorganization. Using organizational
principles is an important aspect to this reorganization.
PPT 8-6
Structuring an Organization
Chapter 08 - Structuring Organizations for Today's Challenges
PPT 8-7
Safety vs. Profit
PPT 8-8
The Changing Organization
PPT 8-9
How Much Changes in a Decade?
1. This slide shows just how much our country has
changed since 2000.
2. Clearly the digital revolution is shown here with
the amount of blogs, cell usage, e-mails sent, and
so on. Ask the students, Do you expect these num-
bers to continue to grow? What may this table look
like in 2020?
3. The number of daily newspapers and letters sent
have dropped. Ask the students, Do you think we
will lose more daily newspapers? What about let-
ters? How many still receive letters/cards from
grandparents opposed to e-mails or Facebook
posts?
PPT 8-13
Weber’s Principles
Weber, a German sociologist and economist, wrote The
Theory of Social and Economic Organizations. Weber’s
principles were similar to Fayol’s. He emphasized job de-
scriptions, written rules, consistent policies, regulations,
and procedures, and staffing and promotions based on qual-
ifications. Weber was in favor of bureaucracy and believed
that these principles were necessary for large organizations’
effective functioning. However, in today’s corporate world,
these rules and bureaucracy do not necessarily work. Or-
ganizations need to respond to customers and other envi-
ronmental factors quickly which calls for a creative, flexi-
ble, and a quick decision-making process contrary to a bu-
reaucratic process.
PPT 8-14
Hierarchies and Command
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Typical Organization Chart
Chapter 08 - Structuring Organizations for Today's Challenges
PPT 8-16
Bureaucratic Organizations
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Progress Assessment
1. Division of labor is dividing tasks among workers
to complete a job. Job specialization is dividing
tasks into smaller jobs.
2. Fayol’s principles of management are:
• Unity of command
• Hierarchy of authority
• Division of labor
• Subordination of individual interests to the
general interest
• Authority
• Degree of centralization
• Clear communication channels
• Order
Chapter 08 - Structuring Organizations for Today's Challenges
PPT 8-18
Centralization or Decentralization?
Centralization can be defined as an organizational struc-
ture that focuses on retaining control of authority with
higher-level managers. One of the disadvantages of this
type of management style is slower decisions because of
layers of management. Ask the students, What specific
problems do you see with this type of management? (Slow-
er decision making means the company is less responsive to
both internal and external customer needs.) Share with the
students a simple rule to follow when dealing with central-
ized authority: Decisions regarding overall company policy
and establishment of goals and strategies should be made at
the top.
Decentralization is an organizational structure that fo-
cuses on delegating authority throughout the organization to
middle and lower-level managers. The most significant ad-
vantage of this form of management style is the empower-
ment of the employees. Statistics indicate when delegation
is practiced in a company, absenteeism, injuries, loyalty,
and production improve. Share with the students a simple
rule to follow when dealing with decentralized authority:
The closer an employee interacts with the customer, the
more decentralized the decision making should be. For ex-
ample, a customer service manager must have the authority
to make a decision that will satisfy a customer immediately,
not wait until the home office makes a decision.
PPT 8-19
Span of Control
Chapter 08 - Structuring Organizations for Today's Challenges
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Organizational Structures
Many organizations have moved from tall organizations
to flat organizations in an effort to increase nimbleness in
the marketplace.
PPT 8-21
Flat Organizational Structure
PPT 8-22
Departmentalization
Chapter 08 - Structuring Organizations for Today's Challenges
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Four Ways to Structure an
Organization
Traditional business models, such as line organizations
and line-and-staff organizations, are giving way to new
structures.
PPT 8-29
Line Organizations
PPT 8-30
Line Personnel
Chapter 08 - Structuring Organizations for Today's Challenges
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Staff Personnel
PPT 8-32
Sample Line-and-Staff Organization
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Matrix Organizations
The creation of matrix organizations was in response to
the inflexibility of other more traditional organizational
structures. This structure brings specialists from different
parts of the organization to work together temporarily on
specific projects.
Chapter 08 - Structuring Organizations for Today's Challenges
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Sample Matrix Organization
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Advantages of the Matrix Style
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Disadvantages of the Matrix Style
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Cross-Functional Self-Managed
Teams
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Going Beyond Organizational
Boundaries
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Building Successful Teams
1. This slide presents five important conditions for
garnering the maximum benefits of small teams,
according to Jon Katzenbach, coauthor of The Wis-
dom of Teams.
2. Ask the students, Which of these five conditions do
you believe would be most important in your team
experience? Why? (The most critical factor of these
five conditions, according to Katzenbach, is a clear
performance purpose for the team.)
Chapter 08 - Structuring Organizations for Today's Challenges
PPT 8-40
Progress Assessment
1. Line personnel are responsible for directly achiev-
ing organizational goals. Line personnel include
production workers, distribution people, and mar-
keting personnel. Staff personnel advise and assist
line personnel in meeting their goals.
2. The flexibility inherent in the matrix-style organiza-
tion directly challenge the rigid line and line-and-
staff organization structures.
3. The main difference between matrix-style organiza-
tion and cross-functional teams is that cross-
functional teams tend to be long-lived as compared
to the temporary and fluid nature of teams in a ma-
trix-style organization.
PPT 8-41
Real-Time Business
PPT 8-42
Transparency and Virtual Corporations
